Originally Posted by
AerialPerspective
True, but it's only as strong as the imbecile who is the Treasurer - Mr 'All tip and no iceberg' Costello blithely approved of the sale to APA of Qantas - even after journalists had pinned down APA and they'd reluctantly admitted that their plan for Qantas included emptying its bank accounts and stripping it of assets, loading it to the ceiling and beyond with debt then hoping that it trades its way out before flogging it off (if it still existed).
I can't find any reporting consistent with that assertion, perhaps you have a reference for that. I'd be fascinated to hear who these 'journalists' were who allegedly managed to extract such damming admissions from APA ostensibly before FIRB approval had even been recommended. Surely they won Walkleys for that sort of journalistic prowess.
What was most assuredly part of the public record were the details of the legally enforceable Deed of Undertaking provided by APA that:
- Foreign majority ownership of Qantas would not occur.
- Foreign control of Qantas would not occur.
- A majority of directors of Qantas must be Australian citizens.
- Qantas must remain based in Australia.
- A guaranteed capital investment program of $10 billion over the next five years would occur.
- Qantas facilities for the provision of scheduled services, maintenance, housing of aircraft, catering, flight operations, training and administration must be located in Australia.
- Qantas and Jetstar would expand internationally and within Australia.
- The Qantas Group would offer an integrated network of international, domestic and regional air transport services
- The Qantas Group will support regional capacity growth and regional network improvement.
- Maintenance, repair and overhaul operations will continue with a view to building on existing capabilities for wide and narrow bodied maintenance to create an onshore globally competitive in house maintenance repair and overhaul operation.
- Qantas would continue its Frequent Flyer Programme with no loss of frequent flyer points.
Originally Posted by
AerialPerspective
Well done Mr Costello - one investor saved the transaction from going through and APA itself collapsed months later.
APA was a consortium put together such that it complied with the ownership requirements spelled out in the
Qantas Sales Act 1992 with the sole purpose of acquiring Qantas. When their bid to acquire Qantas failed there was no reason to maintain the consortium.